These concepts were taken from the book “Getting Everything You Can Out Of All You’ve Got” by Jay Abraham I would be just explaining them in my own words.
The biggest secret to success in business or a career is to always maintain the edge in everything you do.
It sounds logical but it’s the least understood. And even less frequently practiced.
One of the biggest “competitive-edge” advantages you’ll ever gain is to always make it easier for the client to say yes than it is for them to say no.
And you do that by taking away all the risk from your client.
When you remove the risk for anyone deciding to do business with you, it results in a powerful advantage in your business.
One of the ways you can do that is by letting them know that, if they are ever dissatisfied, you will give them their money back, redo the job at no charge, or whatever else it takes to demonstrate your total, passionate commitment to their satisfaction.
But, in an ultra competitive market almost everyone offers some kind of risk reversal.
So what’s Better Than Risk-Free?
In many selling situations, competition is so keen that you need a greater benefit for the client than basic risk reversal.
Here you are utilizing a better-than-risk-free guarantee, you are acknowledging and rewarding the client for the value of both his or her time and his or her faith expended in favoring you with his or her purchasing decision.
Many publications not only offer to give you a refund but buy you a subscription to their competitor’s publication if you are dissatisfied.
The reason that they work so well is because people don’t want to make any mistakes.
By using risk reversal and purchase guarantees, you get clients to see that they now can’t possibly make a mistake. Nor could they ever look bad again, since they can get out of their purchase if it doesn’t perform.
Increase the Guarantee, Increase the Profit.
2, 5 or 10 year guarantees or even lifetime guarantees might look extreme but believe me they work.
Let’s say you are selling something really expensive and it has a 1 month guarantee.
And let’s say someone buys that product from you, the chances of the thing getting returned within 1 months is really high because after buying, the person is subconsciously trying to find out the things that are wrong with the product.
He is trying to be dissatisfied because he doesn’t want a problem to come up after the 1 months are over.
So the larger the timespan of your guarantee the less your client will be worried. And the more he will be satisfied.
And not a whole lot of people return a product after a decade.
If you use risk reversal, but only in short, abstract, satisfaction-guaranteed terms, change what you say and your terms.
- If your product or service is good and performs for your client, the longer the guarantee and the more specific the performance expectations you make, the more people will buy.
Jay Abraham says,
“A sixty-day guarantee will outproduce a thirty-day guarantee by 20 to 100 percent”
- The clearer, stronger, and more specific the guarantee, the more credibility and impact it will have on a prospect or client.
“unconditionally performance-guaranteed for thirty days”
“100 percent money-back guarantee anytime within sixty days if my product fails to perform exactly as promised”
“No-questions-asked, 100 percent money-back, ninety-day guarantee if you can’t honestly state that your face looks more youthful and radiant, and that your skin has better color and elasticity.
If you don’t enjoy results that are good or better within the first ninety days of using our product, we don’t deserve to keep your money. You have every right to ask for a full, no-questions-asked, on-the-spot 100 percent refund anytime you decide. And if you decide you want a refund, there’ll be no questions asked and no hard feelings whatsoever on our part.”
Look at your business, products, services.
Then make a complete list of every obstacle to your clients or employers that might prevent them from purchasing, dealing with, or choosing you over your competition.
Break them into the following categories:
- NFinancial reasons: the initial cost or expense of choosing you. And the potential financial loss if the transaction doesn’t work out.
- Emotional reasons: how bad the client or employer would look or feel if his purchase or commitment to you fails to perform.
- Measurability reasons: Can it be measured and evaluated to show the tangible impact you or your offering could or should have on the client’s life, business, or career?
Ask yourself what the real downside is in offering the client that product or service on a risk-free basis.
Or even a better-than-risk-free basis.
Look at your product, service, or personal performance history to see how many people have been dissatisfied, asked for a refund, cancelled, or complained.
If the number is low , that means a high risk reversal would be great for you.
If you have a high incidence of problems or dissatisfaction, it means either you promised too much or your product or services are inferior and need quality attention.
If you provide and deliver true quality and value that can be appreciated, perceived, and understood, don’t be afraid to offer risk reversal.
Try it out with a few prospects or clients for a day or week or in one market to see how much better clients respond before you incorporate it continually.
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